Cycles are a tool and should not be used to the exclusion of other tools. There is always the possibility (high probability long term) that the data will be misinterpreted or a relevant fact over looked. So use cycles to check your analysis, not as the only reason to make a decision. Interpretation is the opinion of the author and may be incorrect and should be viewed in that light.

Friday, May 1, 2015

May 4, 2015 weekly outlook

The week just ended was mostly sideways with volatility (1-2%) up and down. This was much as I posted based on conflicted cycles and indicators.

The coming week seems clearer. The 2.5 week (12 TDs) cycle is down thru the first 2-3 days of the week. The 5 week cycle (24 TDs) topped and turns down. The 10 week cycle continues down. The 20 week (Wall cycle) continues up for 2-3 weeks.

So to begin the week 3 cycles are down and one up. By mid week the shorter cycle bottoms and turns up. So a notable pull back should be noticeable for the week with a bottom by May 5-6 and sideways to up near the end of the week.

TSI continues to diverge (down while market was/is sideways to up). A sign of potential weakness. CCI is slightly oversold.

Cycle Dawg

Followers

Old as dirt

I have long been a proponent of TA. I have looked at a lot of different methods. In the 70s I maintained about 50 P&F charts manually (pre Web). Some TA approaches work better than others.
In the end I decided that cycles were as good as any, much simplier than most to use and required less time to do.
You may have your own TA and I encourage you to use it and only use my post/opinions as a check on your TA.